Why workaholism is the real big cost to business

Absenteeism is often highlighted as one of the biggest threats to the growth of UK businesses. A new survey by recruitment specialists Catapult this year revealed that absenteeism is costing the British economy £100bn per year, with businesses losing approximately 6.9 days a year per employee.

Much of the discussion has focused on trying to curb the culture of ‘pulling a sickie’ without fully investigating the underlying causes of absenteeism. As more businesses begin to operate digitally, the line between work and home life is becoming increasingly blurred. Answering emails over the weekend and late finishes have long been the norm in the UK meaning pressure from work is at an all time high. So does putting in all the extra hours really make businesses more profitable?

New research by Expert Market has investigated the most productive regions around the world to reveal that the countries getting the most value out of their workforce are those working significantly shorter hours. So what can businesses take away from these findings and what should the modern working day look like?

Presenteeism vs absenteeism

Being a workaholic is detrimental to our physical health, a fact which most people don’t need confirmed by a doctor. Working excessive hours results in a lack of sleep which makes us more grumpy, have slower reaction times and reduced concentration; the ideal recipe for an unhappy and unproductive employee. Late finishes, early starts and sleep deprived nights are leading causes for stress-related illness brought on by working in high pressure environments.

Without a good night’s sleep, our performance at work is significantly compromised but continuing to come into work has bigger consequences further down the line. Stuart Haydock, Organisational Psychologist of Bupa, comments: “When an employee is ill but still reports for duty, the effects could include de-motivation and a decrease in productivity.’ Dr William Kohler comments on LiveScience: “Sleep is necessary for us to function at our best, and if we do not get adequate quantity and quality of sleep, our performance and our functioning is not going to be satisfactory.”

Employees who feel pressured to work themselves into the ground are risking long term health issues but this will also affect a business’s bottom line. Because it is easier to measure, absenteeism is often blamed for unproductive behaviour in the workplace, but a new report by GCC this year revealed that employees admitted to working unproductively for 57 days of the year which equates to a staggering three working months. Dr. Olivia Sackett, head researcher at GCC comments: “Businesses use absenteeism rates as an indicator of engagement and productivity because it’s easy to quantify. If your employee is at their desk or on the work site, you can tick a box”. 

Following on from the CIPD’s annual Absence Management report, Professor Sir Cary Cooper confirmed that the cost of presenteeism to businesses is double that of absenteeism as workers attempt to battle through work despite being sick culminating in long term fatigue and a lack of motivation to complete tasks to a high standard, which Cooper claims is more dangerous to the UK economy than people taking unplanned time off.

No more holidays

In addition to presenteeism, there are a growing number of professionals who don’t feel comfortable taking the time off that they are entitled to. One third of British workers are reported to not use their annual leave entitlement from feeling the pressures of too much work and not ‘daring’ to ask for time off.

This sentiment is especially true for young people who are in the early stages of their career and believe that being available at all times in a new role will be helpful further down the line. A Glassdoor survey conducted in 2014 showed that people aged between 16 and 24 were least likely to take all of their annual leave allowance for fear of falling behind but this routine also contributes to long term work-related stress. In an interview with the Guardian, Penny De Valk of HR consultancy, Penna, tells employees to think of their career as a marathon not a sprint, highlighting the potential consequences of burning out very early on and the importance of taking breaks to recharge and refuel.

Pressure at work is filtering into the family home as parents feel too stressed and exhausted to spend quality time with their families. The CIPD’s Absence Management survey revealed that one in three parents claim to work more than 45 hours a week meaning they see their children for less than one hour in the evenings.

Let’s all move to Europe

The UK prides itself on being the tech capital of Europe with hundreds of cool new start-ups initiating the ‘perkplace’ culture, where companies provide employees with a stream of benefits designed to enhance their wellbeing at work including policies that actively discourage excessive working.

However, new research by Expert Market has positioned the UK significantly lower than its European counterparts in both hours worked and GDP output. Notable countries who put in significantly less hours in the office but have an impressive productivity score include Denmark and Germany, who boasts some of the best work-life balance in the world.

Sweden hit the headlines earlier this year after several high profile businesses announced an official move to implement a standard six hour working day. Following a successful trial at a hospital in the busy city of Gothenburg that saw medical staff increase efficiency and reduce sick leave, other notable companies are following suit. Linus Feldt, CEO of notable app developer Filimundus commented on the positive impact the shorter working day will have on employees in Sweden: “My impression now is that it is easier to focus more intensely on the work that needs to be done and you have the stamina to do it and still have the energy left when leaving the office.” 

Big companies are now learning about the benefits of “start-up culture” in attracting top talent. The priorities of Generation Z differ significantly from their predecessors, forcing new businesses to change their offering in order to attract and retain the best talent. Flexible hours, generous maternity benefits and regular company socials top the polls as even more important than salary increments to keep motivated, productive and above all, loyal to a company.

Google increased their paid maternity leave from 12 to 18 weeks in the US and noted employees were ‘more effective and happier when the leave ended’ according to Laszlo Bock, Senior VP of Google’s people operations.

The direct correlation between employee satisfaction and productivity suggests an easy answer for the UK - reconsider what the modern working day can look like. Working hours have crept back up across the UK, however faltering productivity levels prove this culture is detrimental to UK businesses. It’s time to ditch the work staticity and literally take a stand, against laborious hours, for improved economic efficiency and happier, more productive staff.